Sweeping tax code changes signed into law by President Donald Trump this year may not change much for this tax season, but 2019 could be a different story.

Due to Texas’ lack of income tax and other factors, the state is set to benefit the eighth most from the changes.

Trump and his supporters say the new code is a win-win for businesses and individual taxpayers.

The code would lower corporate income tax from 35 to 21 percent.

It is projected to also, over time, increase after-tax income for every bracket of taxpayers.

Per a study by website WalletHub, changes to the tax code could benefit Texans in many ways.

With a rating of one meaning the state benefits the most and a 25 being the average – Texas ranked fourth best for low-income families, 17th for middle-income families and 13th for high-income families.

Estimates were generated for state-specific average tax changes at three income levels – low ($25,000), medium ($50,000) and high ($150,000).

The study found “red” states are set to benefit a little more than “blue” states with an average ranking of 24.17 versus 28.62 (lower number is better).

Information was gathered from the Institute on Taxation and Economic Policy for 2018.

A regression model was compiled comparing an estimated relationship between income and tax change for each state.

2018 Tax Fairness Survey

The report was released this week in conjunction with the site’s annual tax-fairness survey.

The survey was conducted from 882 individual responses from March 5-9 via an online site.

They found nearly half of respondents thought the new (2018) tax code was less fair than the current system.

Nearly 70 percent thought the new code would favor the rich over less-wealthy citizens.

Experts give their two-cents' worth

Many experts believe changes to the tax code could make the process less complex for many Americans.

Betty J. Williams, a managing shareholder at Williams & Associates said individual states will see differences but assures the new code is not designed to benefit some states over others.

High-income earners, she predicts, are set to be the most negatively affected by the tax changes in the long run.

Williams said the new code closes many tax loopholes that have been problems in the past.

“It eliminates areas where businesses previously took advantage of deductions, such as the elimination of entertainment expenses in most cases,” she said.

She feels the average American will spend less time, or the same amount of time, preparing taxes next year under the revised tax code.

Benjamin Goldburd, a partner at Goldburd McCone LLP, said the changes to the tax code more negatively affect higher-tax states like California, New York and New Jersey.

People who itemize deductions are limited to a $10,000 deduction in state, local and individual income and property taxes.

“This means higher-income and higher-taxed state residents, like Californians or New Yorkers, will only be able to deduct up to the $10,000 on their federal returns,” he said.

Eventually, Goldburd said, this could lead to a “mass exodus” of these high-tax paying residents from these states.

An unfortunate “loser” in this changed code could be non-profit organizations, Goldburd said.

Under the new code, a standard deduction nearly doubles.

“This means that those who would spend a more sizable amount of their income on charitable giving no longer have a tax benefit to do so," he said. "...While many will continue to provide funds to charities out of purely selfless reasons, the fact remains that taxpayer charitable giving will likely fall, and these organizations will suffer."

H. David Rosenbloom – a James S. Eustice visiting professor of practice and taxation, and director of the International Tax Program at the New York University School of Law – said at a certain level, the larger standard deduction in the new code could make the process less complex for some taxpayers by reducing the number of people that itemize deductions.

“It is probably more accurate to think about industries, and then figure out the states where those industries are located,” he said about who may benefit from the changes.

“I am aware of benefits for oil and gas, real estate and exporters," he said. "There is also a gigantic benefit for farmers who sell agricultural products to cooperatives, but that provision operates to the detriment of other possible purchasers of agricultural products and the Republicans are scrambling to try to fix that."

The professor said states likely to be negatively affected are those with high income or property taxes. He fears a greater problem is international provisions could deteriorate relationships with multinational companies.

“We can’t go it alone in the tax world, not anymore,” Rosenbloom said.